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General Motors

GM

GM made the announcement today and said the investments in the manufacturing plants "will create or retain about 1,000 jobs."

The investments will be made in these five plants:

  1. Flint Assembly 
  2. Romulus Powertrain Operations
  3. Detroit-Hamtramck Assembly
  4. Toledo Transmission Operations
  5. Bedford Castings in Indiana

GM says the investments "will support production of a new V6 engine, new 10-speed transmission and an existing 6-speed transmission. They will also fund assembly plant upgrades, including a new paint shop and logistics optimization center."

Steve Carmody/Michigan Radio

General Motors plans to make a “significant manufacturing” announcement in Flint today.

General Motors officials have declined to say what they plan to announce at the Flint Assembly plant.

But they have confirmed that Governor Rick Snyder and GM North America President Mark Reuss will be there.

The announcement in Flint coincides with an appearance by outgoing GM CEO Dan Akerson at the National Press Club in Washington D.C., where he’s scheduled to speak on the automaker’s plans for future investment in the U.S.

Ken Sikkema expects the Michigan House of Representatives in Lansing to be even more conservative in 2017.
Lester Graham / Michigan Radio

This Week in Review, Rina Miller and Jack Lessenberry discuss the passage of the ani-abortion coverage bill and campaign finance bill, as well as the appointment of the first female CEO of General Motors.

Dave Pinter / Flickr

It’s been a big week for Michigan’s auto industry.

A report from Business Leaders for Michigan revealed a plan to bring 100,000 automotive jobs to the sector. And General Motors announced the next CEO of the company will be Mary Barra. She’ll be the first female CEO in the car industry.

Daniel Howes, a business columnist from The Detroit News, talks with us about this week’s announcements.

Listen to the full interview above.

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This Week in Michigan Politics, Jack Lessenberry and Christina Shockley discuss marijuana and campaign finance bills and the appointment of the first female CEO of General Motors.

General Motors CEO Mary Barra
Carlos Osorio / Associated Press

She began her career at General Motors as an engineering co-op student in 1980.

33 years later, Mary Barra has made history by being named the next CEO of GM — the first time a woman has been placed in the top spot of a major automaker.

GM made the groundbreaking announcement today that CEO Dan Akerson has moved up his retirement to January 15, after discovering his wife is battling advanced-stage cancer.

But who is Mary Barra, and what does this appointment mean to America's auto industry?

Listen to the full interview above. 

GM

Dan Akerson, chairman and CEO of General Motors, will step down on January 15, 2014. Akerson moved up the date of his departure by several months after his wife was diagnosed with an advanced stage of cancer.

Akerson's successor will be Mary Barra. She's the executive vice president, Global Product Development, Purchasing and Supply Chain.

The 51-year-old Barra will become the company's first female CEO, and will be the first female CEO in the global automotive industry.

Barra was the daughter of a Pontiac die maker, according to Bloomberg:

Barra, 51, whose career started on a factory floor as an intern more than 30 years ago, has been in charge of product development and quality of all GM cars and trucks for 22 months, fostering collaboration and wringing costs out of the supply chain.

In its press release, GM said Barra was a leader in the company's turnaround:

...revitalizing GM’s product development process resulting in the launch of critically acclaimed new products while delivering record product quality ratings and higher customer satisfaction.

“With an amazing portfolio of cars and trucks and the strongest financial performance in our recent history, this is an exciting time at today’s GM,” said Barra. “I’m honored to lead the best team in the business and to keep our momentum at full speed.”

GM announced other executive staff changes as well. Dan Ammann, 41 and GM CFO, will become company president and will manage the company's regional operations around the world. He'll remain as CFO of GM as well. A new CFO will be named at a later date.

And Mark Reuss, 50, will move into the position being vacated by Barra.

User: Brother O'Mara / flickr

The U.S. government no longer owns GM

The U.S. government sold its last stock in General Motors today. The government no longer owns parts of the company.

Medical marijuana bills could move forward today

"A state House panel could vote as early as today on some high-profile medical marijuana bills. The legislation would revive medical marijuana dispensaries in Michigan and allow patients to use edible forms of cannabis," Jake Neher reports.

MSU student raises $3,000 for owner of flipped car

"A Michigan State University student has raised more than $3,000 to help pay for damage done to a stranger's car by rowdy Spartan fans after the school's football team beat Ohio State in the Big Ten Championship game on Saturday," the Associated Press reports.

GM Renaissance Center in Detroit.
John F. Martin / Creative Commons

Four years after facing the possibility of its own demise, General Motors is free of the controversial government ownership that saved the Detroit automaker in 2009.

"It was an unambiguous success," says Steven Rattner, who headed the Obama Administration's Auto Task Force.

The task force shepherded GM through an unprecedented 42-day bankruptcy.

The U.S. Treasury announced Monday it had sold the last of its stock in GM, at a loss of $10.5 billion.

Steve Carmody/Michigan Radio

General Motors is heading back to its roots.

The automaker announced today that it will sponsor Flint’s “Back to the Bricks” car show for the next five years. The show features hundreds of ‘classic’ cars and trucks.

“This is an event that is more than just a car cruise and a car show,” says GM spokesman Tom Wickham, “It brings people into a community…provides an economic boost to a community and we need an economic boost.”

About a half million people attended Back to the Bricks in Flint this year.

Chevrolet

Today, General Motors announced plans to largely withdraw its Chevrolet brand from Europe beginning in 2016.

The automaker says the decision was largely due to a challenging business model and the difficult economic situation in Europe.

Meanwhile, the Ford Mustang is celebrating its 50th birthday with a new design — and plans to go global.

Russell Padmore, business reporter for the BBC, joins us from London to talk about the latest auto news.

Listen to full interview above. 

Car dealership.
GM

Auto companies report November's auto sales next week.

The news should be good, especially for Ford, Chrysler and Detroit.

Michelle Krebs is an analyst with Edmunds.com. She says the Detroit Three have had a great year so far, with car sales leading the way.   

“But they also are the biggest seller of trucks,” says Krebs, “People are buying big trucks again like they haven't in a long time.

Krebs says GM's did better this year than she expected.  She adds that’s especially true since Consumer Reports called the new Impala the "best sedan in the U.S."

Half a century ago, America suffered one of the most traumatic events in our history: The assassination of President Kennedy. But while it is important to remember that, it might also be good to consider that there is a bunch of good economic news today. Good news, especially for Michigan.

Yesterday, University of Michigan economists presented their annual November forecast. They saw good things ahead, with the national economy growing almost twice as fast over the next two years as now.

Two experts from the Research Seminar in Quantitative Economics predicted five million new jobs over the next two years. Unemployment, they predict, will fall from just over seven to about six percent.

Meanwhile, they predict the automakers will sell half a million more units next year than this, more still in 2015, and the housing market will also grow.  Inflation will stay low and oil prices will remain steady. This is all very good news, if true.

Steve Carmody/Michigan Radio

The announcement this week that an Alabama company plans to build a pipe factory in Flint could help spur further investment in a former General Motors site there.

The 235 acre Buick City site is being marketed by the Racer Trust. The trust was set up to sell off abandoned General Motors properties. American Cast Iron Pipe is the first company to invest in Buick City.

Elliot Laws is with the Racer Trust. He says they’ll be blasting news of American’s plans to build in Flint to other potential investors…

General Motors wants tax incentives to help offset an investment in its Detroit assembly plant.

But some Detroiters say the bankrupt city shouldn’t be handing out subsidies to profitable carmakers.

A small group of protesters circled in front of GM headquarters in downtown Detroit Monday, demanding that the corporation “pay its taxes.”

The Reverend Charles Williams II, who led the protest, said it's not right for GM to look for tax abatements while the city is in federal bankruptcy court, and pensioners face possible cuts.

Steve Carmody/Michigan Radio

DETROIT (AP) - The government is getting closer to selling all of its General Motors Co. stock.

The Treasury Department said in its August report to Congress that it sold $811 million worth of GM common stock last month.

The report dated Tuesday says the government has recovered about $35.4 billion of the $49.5 billion bailout it gave the Detroit automaker. That means taxpayers are still $14.1 billion in the hole.

Peter Martorano / Flickr

There is no small touch of irony in the fact that as Detroit filed for bankruptcy, the U.S. car makers are enjoying boom times. Sales for the Big Three in July were the highest in seven years. GM, Ford and Chrysler are adding shifts and hiring workers. Good times.

But not for the city that gave birth to what we know as the U.S. auto industry.

Tom Walsh, business columnist for the Detroit Free Press, and Sonari Glinton, National Desk Reporter from NPR who has covered transportation and the auto industry, joined us today.

August was a good month for U.S. automakers.

Nearly all automakers are reporting double-digit sales gains as August shapes up to be another strong month for the industry.

General Motors

GM will recall 292,879 Chevy Cruze cars from the  2011 and 2012 model years for a potential intermittent loss of partial braking power.

GM says it's aware of 27 low-speed crashes, some of which could be linked to the problem, but no injuries.

The automaker says in rare instances, a driver might have to apply extra force to the brake to get the car to stop.

The recall is for Cruze cars equipped with the 1.4 liter gasoline turbo engine and automatic transmission.

Dealers will remove and replace a microswitch in the power brake vacuum pipe assembly.

GM

GM announced today that the price of a Chevy Volt will drop by $5,000:

The 2014 model will start at $34,995...

If consumers include federal tax credits ranging from $0-$7,500 (depending on individual tax liability), pricing could start at $27,495.

Wikipedia

While Detroit embarks on the beginning days of its bankruptcy, the city’s Big Three automakers are reemerging from their own financial crises. It was four years ago that GM and Chrysler filed for Chapter 11 bankruptcy.

And as this month marks the 150th year after Henry Ford’s birth, we take a look at what it takes to run a big auto company, and the future of Michigan’s automakers.

Bob Lutz has held top positions at GM, Ford, Chrysler, and BMW. His most recent position was that of Vice Chairman of GM from 2001 to 2010.

His newest book gives us a behind-the-scenes look at the bosses Bob Lutz has worked for, some of the most legendary names in auto history. It's called Icons and Idiots, out from Portfolio/Penguin.

Bob Lutz joined us today to talk about his book.  

Listen to the full interview above.

thecarconnection.com

Analysts are expecting a robust month for auto sales.

Jesse Toprak is an analyst with TrueCar.com.  He says July sales were good across all categories.

“But two extreme segments stand out, we see very high demand for small cars and small SUVS, and a very healthy demand for large pickup trucks,” says Toprak.

Toprak says the increase in pickup sales is being driven by small business owners, and an uptick in home renovations.

General Motors

General Motors is number two in global auto sales so far this year, just behind Toyota, and just in front of Volkswagon.

So why didn't GM make more money than its Dearborn rival, Ford Motor Company, in the second quarter?

Both companies made $1.2 billion, but Ford made that money based on a lower volume of sales.

User: Brother O'Mara / Flickr

Governor cuts trip short

Governor Rick Snyder will return early from his trip to Israel today in order to lobby for Medicaid expansion. Snyder will encourage fellow Republicans to pass the legislation. “Today is the last day for lawmakers to pass Medicaid expansion before their two-month summer break,” reports Jake Neher.

Teachers protest education legislation

Michigan teachers rallied in Lansing yesterday to protest legislation that would allow state officials to close struggling school districts.  According to the Associated Press, “the legislation lets the state superintendent and treasurer dissolve a district with 300 to 2,400 students if certain criteria are met.”

General Motors receives high ratings

For the first time ever, General Motors topped the Initial Quality Survey released by automotive tracking firm J.D. Power.  Michigan Radio’s Tracy Samilton reports that GM received a better score than any other corporation in the study.  She says "people are reporting very few mechanical problems.  Most automakers have drummed out serious engine and transmission defects from their cars."

This year's vehicle Initial Quality Survey by the business tracking firm J.D Power and Associates is a bit of a stunner.

The survey asks people how many problems they had with their car in the first 90 days of ownership.

The top auto company was GM. 

The company's GMC brand was second only to Porsche.  That's the first time GMC has ranked anywhere near that high in the history of the survey.   Chevy was fifth, also a dramatic rise in the rankings.

GM Media

Late last year, the U.S. Department of Treasury announced it would sell all its remaining stock in General Motors in 12 to 15 months.

Today, the Treasury is announcing a plan for another big sell-off.

Officials say, "subject to market conditions," they intend to sell 30 million additional shares of GM common stock "in conjunction with GM’s inclusion to the S&P 500 index effective as of the close of trading on June 6, 2013."

user: Cauldon Graphix / Flickr

Mad Men's Don Draper is known on the AMC show as being the best guy to create an ad campaign.

He's known for lines like, "What you call love was invented by guys like me...to sell nylons."

Don's company, Sterling Cooper Draper Pryce, has done creative campaigns for companies like Lucky Strike, Maidenform, Heinz and Hilton Hotels.

In the most recent season, much of the company's time was spent securing an auto client -- Jaguar.

If you live in Michigan there’s a good chance you’ll head up north this summer, or maybe west to bask in the sun on Lake Michigan, but if you’re still not sure where to escape this summer, we have some fun tips on hidden vacation gems you are sure to enjoy.

And, Rick Pluta gave us an update on the Mackinac Policy Conference.

And, Daniel Howes shared his insights on how the financial and investing world views the Detroit auto companies.

user paul (dex) / Flickr

It’s Thursday, which means it’s time for our weekly conversation with Daniel Howes, the Business Columnist at the Detroit News.

This week, he focused on the business community in Detroit, where companies like General Motors are trying to give back through programs like the GM Student Corps. From Howe's column:

By itself, the pilot program unveiled in the Wintergarden of GM’s Renaissance Center, isn’t front-page news in a city bursting with the good, the bad and the financially ugly on a weekly basis. What GM Student Corps signifies, however, is another example of a key player in the business community seeing a communal need and moving to fill it, quickly.

He joined us today to discuss the business in Detroit as well as the health of the auto industry.

Listen to the full interview above.

Car companies closed a lot of North American factories in the past ten years as the auto industry restructured.

That has made Jim Tetreault's job even more of an art and a science.

Tetreault is Ford's head of North American manufacturing.  He's responsible for maximizing the number of vehicles that any of the Detroit automaker's remaining plants can produce, while minimizing the downtime at each facility.

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